Recall Application 2, "A Nobel Laureate Explains Why Europeans Work

question 14

Multiple Choice

Recall Application 2, "A Nobel Laureate Explains Why Europeans Work Less than U.S. workers or the Japanese," to
answer the following questions:
-According to the application, as the U.S. population ages, the U.S. needs to

• A) decrease taxes.
• B) make changes in Social Security.
• C) increase benefits.
• D) lower the retirement age.

---

Definitions:

Marginal Utility

The additional satisfaction or utility that a person receives from consuming one additional unit of a good or service.

Milkshakes

A sweet, creamy beverage made by blending milk, ice cream, and flavorings or sweeteners such as butterscotch, caramel sauce, or chocolate syrup.

Utility-Maximizing

The process or strategy of selecting the combination of goods and services that provides the highest level of satisfaction or utility to an individual.

Pizza

A popular dish of Italian origin, consisting of a flat round base of dough baked with a topping of tomato sauce and cheese, often with added meats, vegetables, or other ingredients.